SALE EXTENDED 70% OFF QuickBooks for 3 months*   Ends 12/8

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Simplify payday and set payroll to run automatically on QuickBooks. Explore QuickBooks Payroll
blake2424
Level 1

QuickBooks Desktop makes auto entries to Distributions instead of Retained Earnings

QuickBooks Desktop is auto generating an electronic swap to show our previous year's Net Income as a Distribution instead of Retained Earnings. Is there a setting I can change to have the swap move the previous year's Net Income to Retained Earnings instead?

 

Thank you!

2 Comments 2
BigRedConsulting
Community Champion

QuickBooks Desktop makes auto entries to Distributions instead of Retained Earnings

On a balance sheet, QuickBooks automatically rolls earnings from all prior years to the special Retained Earnings account it creates when the company file is created.

 

If someone renamed that special account and created another equity account called "Retained Earnings", that could cause what you're seeing.

 

You can check to see if this is the case because the special retained earnings Equity account, no matter what it is called, will not display a balance on your chart of accounts. It's the only Equity account that behaves that way.

 

blake2424
Level 1

QuickBooks Desktop makes auto entries to Distributions instead of Retained Earnings

QuickBooks is automatically rolling earnings into a Distribution account instead of a Retained Earnings account. 

 

I'm trying to figure out how to make QuickBooks automatically roll into a Retained Earnings account.

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us